BioDelivery Sciences International, Inc.

Greetings and welcome to the Biodelivery Sciences fourth quarter and full year 2020 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If you would like to ask a question, please press star 1 on your telephone keypad. If anyone should require operator assistance during the conference, please press star 0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Terri Coelho. Executive Vice President and Chief Financial Officer. Thank you. Please go ahead.

Thank you and good morning everyone. Welcome to our fourth quarter 2020 earnings conference call. Leading the call today is Jess Bailey, Chief Executive Officer. We are joined by Scott Plescia, President and Chief Commercial Officer. Following our prepared remarks, we will conduct a question and answer session. Earlier today, BioDelivery Sciences issued a press release announcing its financial results for the fourth quarter and full year 2020. A copy of the release can be found on the Investor Relations page of the company's website. Before we begin, I would like to remind everyone that certain statements may be made during this call, which may contain forward-looking statements. Such forward-looking statements are based upon current expectations, and there can be no assurances that the results contemplated in these statements will be realized. Actual results may differ materially from such statements due to a number of factors and risks, some of which are identified in our press release and our annual, quarterly, and other reports filed with the SEC. These forward-looking statements are based on information available to BDSI today, March 10, 2021, and the company assumes no obligation to update statements as circumstances change. Our 10-K will be filed with the SEC by Friday, March 12th. An audio recording and broadcast replay for today's conference will also be available online in the investor section of the company's website. With that, I'd like to turn the call over to Jeff Bailey, our CEO. Jeff?

Thank you very much, Terri, and welcome, everyone, to our company's fourth quarter 2020 earnings call. I'm pleased to report that BDSI finished the year strong, including both our fourth quarter as well as our full year 2020 results. In 2020, our team focused on responding rapidly to the evolving pandemic selling environment and developed a number of commercial tools to help prescribers and patients while continuing to ensure patient access through solid formulary coverage. We also realigned resources to ensure continued prioritization of customer-facing resources, pursued operational excellence, and further strengthened our balance sheet through a combination of healthy operational cash flow and selective borrowing. Year over year, sales for the company grew 40% the full year 2020, in spite of the multiple headwinds we faced. We generated over $40 million of EBITDA, or 26% of net sales. Our business is healthy, with strong cash generation, and we are beginning 2021 well-positioned for continued growth. I would like you to have three main takeaways from today's call. First, Prescription growth trends in the fourth quarter are highly encouraging, and momentum for both Delbuca and Simprone total prescriptions and new-to-brand prescriptions remain strong. So far in 2021, we are reassured to see demand in seasonality trends that are aligned with prior years. But there have been no unusual disruptions associated with the pandemic. We did see some impact from the severe winter storms in February in the south-central part of the country, an area where we have a strong presence. Both brands continue to achieve all-time highs in market share and volume. Second, our Agile commercial team was able to rapidly adapt to the pandemic selling environment, but patient visits were down by implementing virtual tactics to communicate with physicians and developing a number of creative programs. As I had mentioned in our prior earnings call, we have rolled out the Buca First Start program on a national basis. First Start allows healthcare professionals to easily prescribe Belbuca to appropriate commercial patients for the first time, providing convenient access to Belbuca, while the healthcare provider's staff is securing prior authorization approval. We believe that this program is having a positive impact, and we are optimistic that it can generate incremental growth in 2021. Scott will provide more details. Third, our company has a strong balance sheet. and ended the year with approximately $112 million in cash. This cash provides us with strategic optionality to maximize shareholder value. As a reminder, BDSI is highly profitable. In the fourth quarter, we generated $14.3 million in EBITDA with 34% EBITDA margins. This was accompanied by over $11 million in operating cash flow generation. Taken together, I am highly optimistic in our ability to deliver continued growth in 2021. The COVID pandemic is now one year old, but our performance remains strong, and we are well positioned in our respective markets, and both of our high-performing brands continue to grow market share. I wanted to share a few key updates about our business. Bell Buca generated outstanding growth in the fourth quarter. Belbuca's TRX volume grew 3.7% sequentially and 20.6% year-over-year. Additionally, Belbuca TRX market share hit another all-time high by growing to 4.5% in Q4 as compared to 4.1% in Q3. We are now in the second straight quarter of what appears to be a recovery, following the low point in the second quarter of 2020 as a result of the pandemic, which led to a reduced number of patient visits to physician offices. Similarly, we also saw Simproic rebound and hit an all-time high for TRX volume and market share in the Pemora class, which declined 6%. These results reflect the outstanding execution by our sales team and Simproic's payroll product profile. Lastly, our balance sheet has never looked better. With $112 million in cash, we focused on prioritizing our investments during this disruptive time. with a focus on preserving and growing our customer base and the longer-term health of our brands. Our balance sheet gives a significant optionality to expand our business organically or seek complementary opportunities at the right time and invest in our business. 2020 was a challenging year for the industry, and I am proud to see how the BDSI team really pulled together and also thrived. Our outstanding performance both in the fourth quarter and for all of 2020 positions us to remain on a strong growth trajectory. We have differentiated in growing products, a strong balance sheet, and a high-performance senior management team. We are united in our mission to help patients with chronic diseases while focusing as well on delivering increased shareholder value. With that, I will turn the call over to Scott to provide more details of our performance during the fourth quarter. Scott?